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Wednesday, 16 July 2014

A New EU Directive – a blow to retailers?

Since the 13th of June, a new EU directive has been enforced, heralding an
increase in consumer rights regarding purchases made
online or away from a retailer’s premises. The government passed the Consumer
Contracts Regulations, the UK implementation of the EU
directive on human rights. But is this bad news for retailers?

It certainly seems a victory for the consumer at least. The new directive aims
to uphold the same consumer rights across all of
Europe, simultaneously providing more transparency for the consumer in regards
to their rights.

What are the changes?

Under the current English Law, consumers are entitled to have seven working
days to cancel an order if required, commonly known as
the ‘cooling off period’. This has been extended to fourteen calendar days,
initiating from the point which the consumer receives
the goods, enabling consumers to return products regardless of their reason.

Furthermore, the period in which retailers can provide refunds has been cut
from 30 days to 14 days. These refunds must cover the
cost of delivery and can be given at any time upon first receiving the goods.
This slashes the time allocated for traders to check
returned stock, meaning retailers’ processes must be fast, increasing the
burden on their shoulders.

The new directive further impacts the layout and interface of retailers’
websites. Buttons instructing customers to ‘buy or ‘confirm
purchase’ must be scrapped and in place of them, text of ‘order with obligation
to pay’ must be inscribed. This was implemented to
prevent consumers from accidently committing themselves to an unwanted
subscription or product. Moreover, automatically selected
boxes on websites designed to coerce the consumer into paying for extra deals
or insurance must also be prohibited, another way of
protecting the customer.

What does this mean for retailers?

This spells difficulty and hassle for retailers, as it requires them to
implement major changes to their systems; including re-
training staff, rewriting their terms and conditions and redesigning their
websites, particularly the final payment screen.
Retailers must now review their entire business structure to ensure it complies
with the new regulations. In an age where almost
everything relies on technology, this new directive encompasses all businesses
across the nation, affecting the way in which
consumers and their rights are handled and regarded.

Where we come in

If you require any further information or assistance, whether it be reviewing
the terms and conditions of your business or aiding
you in drafting new contracts, we are more than happy to help.

Contact us on 020 8805 5307 or enquiries@isolicitor.co.uk
for a no obligation chat.
Written by guest blogger, Yan Lai
16 July 2014